Your first home is not typically your last homel and the needs for housing change depending on your personal stage of life.
Some sample scenarios:
- A young couple can think of upgrading their house when the time has come to grow the family.
- Another couple getting closer to retirement could be thinking of downgrading their house once the children leave home.
- A family can think of moving to a different area with better schooling options for their grown-up kids.
- A family having to move to a different city due to better employment conditions or a work related promotion to a different region.
- A family finally finding their dream home.
Circumstances are different for every single household, but we are here to help you navigate the options that best fit your expectations and goals.
Depending on your scenarios, the best option for you will vary by either:
- Selling your existing home before buying your new one.
- Topping up the existing mortgage to cover purchase cost of new property and get a new mortgage with a different lender for the balance.
- Arrange a bridge loan to pay for the new property in advance and then sell the existing property.
- Refinance with a different lender that offers a better deal.
Talk to us and let us assess your current situation, we will find what are the viable alternatives and we will explain the pros and cons of going with any of the options available.
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Contact us for a no obligation assessment.
Bridging loans are useful when you want to buy a new house before selling the house you are currently living at.
This type of loan is a “bridge” between buying your new house and selling your existing one, it is a temporary financing tool available until you sell your home.
During this period, you keep paying your existing mortgage plus interest-only for the amount borrowed for the new property on a variable interest rate.
Types of bridging loans:
Closed Bridging Loans (Fix term)
The main characteristic is that the settlement dates for both properties are known, but they do not coincide, so the bridging arrangement will end when the sale of the existing property is settled. The maximum term for closed bridging loans is 12 months.
Open Bridging Loans
This type of Finance Bridging is called “open” because there is no settlement date for the existing property, it has not been sold. The maximum term for open bridging loans is 6 months.
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If you are in this scenario of buying and selling two properties, get in contact with us and we can help you by assessing your situation and we will provide you with suitable loan options for your circumstances.